Karachi: In a potential relief for millions of Karachi residents, K-Electric (KE) consumers may receive an additional Rs6.62 per unit reduction in their electricity bills, beyond the already announced government tariff cut.
The development emerged as the National Electric Power Regulatory Authority (NEPRA) concluded hearings on a petition seeking a fuel cost adjustment (FCA) for February 2025. If approved, this move could translate into total consumer savings of approximately Rs6.662 billion.
KE argued for a partial adjustment, claiming it aims to create a financial buffer for consumers ahead of the high-consumption summer months. However, this approach faced resistance from industrial stakeholders, who criticized KE’s handling of accumulated costs and demanded more transparency.
During the hearing, KE CEO Moonis Alvi defended the company’s proposal, stating that independent verification costs in such matters are globally accepted as the applicant’s responsibility. He cited international norms where feasibility and environmental studies are usually borne by applicants during project financing.
NEPRA officials provided clarity on several technical components of the tariff, including capacity payments—which, they stated, are based on plant availability rather than actual consumption. Under new rules, consumer bills are expected to display more detailed breakdowns, enhancing transparency.
Tanveer Barry, Vice President of the Karachi Chamber of Commerce and Industry (KCCI), emphasized the need for timely data from NEPRA so stakeholders can raise concerns proactively. NEPRA, in turn, denied any delays in meeting Service Level Agreements (SLAs).
Importantly, NEPRA clarified that this Rs6.62/unit relief is not part of the government's broader subsidy, but an additional benefit offered by KE. A final decision on the petition is expected soon, pending further data review.
If approved, the adjustment will be a welcome relief for households and industries in Karachi already grappling with high power bills and rising inflation.
